Reconnaissance Energy Africa Secures Additional Capital through a Bought‑Deal Public Offering

Reconnaissance Energy Africa Ltd. (TSX: REAF), a junior oil and gas company focused on the Kavango Basin in northeast Namibia and northwest Botswana, announced that it has increased the size of its recent public offering to C$19 million. The additional capital will be used to finance a horizontal sidetrack and production testing program at the Kavango West 1X interval of the Huttenberg Formation.

Background of the Offering

  • Initial Announcement (Sept. 1, 2026) – The company disclosed a C$15 million bought‑deal public offering to fund the horizontal sidetrack and production testing program.
  • Upsize Announcement (Sept. 2, 2026) – Within 24 hours, the offering was expanded to C$19 million to meet demand from investors and to provide a larger financial cushion for the development programme.

Use of Proceeds

The raised capital will be allocated as follows:

  1. Horizontal Sidetrack Construction – Construction of the horizontal well segment to enhance production capacity.
  2. Production Testing Program – Operational testing of the Kavango West 1X interval to evaluate reservoir performance.
  3. Working Capital – General corporate purposes and operational expenses associated with field development.

Market Context

  • Share Price – As of 31 August 2026, the closing price on the TSX Venture Exchange stood at C$0.82.
  • 52‑Week Range – The stock has traded between a low of C$0.42 (9 November 2025) and a high of C$1.35 (13 January 2026).
  • Market Capitalisation – Approximately C$293 million.
  • Price/Earnings Ratio – The company currently trades at a negative P/E of –16.89, reflecting its status as a junior exploration firm.

Company Overview

Reconnaissance Energy Africa Ltd. is headquartered in Vancouver, Canada, and specialises in exploring and developing oil and gas resources in the Kavango Basin. The company’s exploration activities are concentrated on the Huttenberg Formation, a prolific structural trap within the Kalahari Desert. The firm is listed on the TSX Venture Exchange and maintains a website at www.reconafrica.com .

Outlook

The increased funding enhances Reconnaissance Energy Africa’s capacity to advance its exploration programme and to accelerate production testing at a key hydrocarbon prospect. The company’s management has indicated that the proceeds will help secure additional drilling and completion work, positioning the firm for potential commercial production in the coming years.